Applied Materials Closes 0.28% Higher on Semiconductor Megadeal Spark Climbs to 65th in Market Amid Mixed Analyst Outlook

Applied Materials (AMAT) edged up 0.28% on Sept. 24, with a trading volume of $1.28 billion, ranking 65th in the market. The stock’s performance was influenced by strategic developments in the semiconductor equipment sector. A key driver was the $5 billion Intel-Nvidia collaboration, which spurred broader market optimism for chip manufacturing infrastructure. This partnership is expected to accelerate demand for advanced fabrication tools, including those produced by Applied Materials.

A strategic alliance between Applied Materials and GlobalFoundries to build a photonics-focused waveguide fabrication facility in Singapore was another focal point. The partnership aims to advance AI applications in augmented reality and digital experiences, leveraging Applied’s material science expertise and GlobalFoundries’ manufacturing scale. This aligns with growing demand for photonics technology in next-generation computing, a sector where Applied has seen strong revenue growth this year.

Analyst sentiment remains mixed, with KeyBanc upgrading its price target to $220 and Mizuho maintaining a $175 target. The stock’s forward P/E valuation is seen as a potential advantage compared to higher-growth peers. However, challenges persist, including reduced Chinese demand and competitive pressures in key product segments. The Intel-Nvidia deal, while beneficial for the broader industry, has yet to translate into a significant near-term boost for AMAT’s valuation.

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